GameStop lays off 14% of workers, closing up to 200 stores

Tuesday

GameStop is the latest struggling retailer to make drastic moves to stay afloat, according to published reports.

Already, the chain has cut 14% of workers at its headquarters near Dallas and in select other locations, according to The Holywood Reporter. Now comes word 180-200 stores will soon be closed for good.

Sales at GameStop were down 14% during the company's fiscal second quarter, The Hollywood Reporter says. For all of 2019, the video-game retailer is projecting a sales drop "in the low-teens."

CEO George Sherman said in federal filings that he has a four-point plan to turn things around.

That plan involves "optimizing the core business by driving efficiency and effectiveness, creating the social and cultural hub of gaming within each GameStop, building compelling digital capabilities and transforming our vendor and partner relationships for an evolving video game industry."

GameStop, which got its start as Babbage's in 1984, currently has more than 5,000 locations. Like other brick-and-mortar retailers, it has been hit hard by online competitors in recent years.